If the Dollar Appreciates,perhaps Because of Speculation or Government Policy,then

question 90

Multiple Choice

If the dollar appreciates,perhaps because of speculation or government policy,then U.S.net exports

• A)increase which shifts aggregate demand right.
• B)increase which shifts aggregate demand left.
• C)decrease which shifts aggregate demand right.
• D)decrease which shifts aggregate demand left.

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Definitions:

Industrially Advanced Nations

Countries that have highly developed industries and infrastructure, often characterized by high levels of income, technological innovation, and standard of living.

Managed Float

A currency exchange rate policy where the central bank allows the currency value to fluctuate in the foreign exchange market but intervenes to prevent excessive movements.

Fixed Rate System

A monetary system in which exchange rates are set and maintained at a certain level by a government or central bank.

Flexible Exchange Rates

A system in which the worth of a currency is permitted to vary based on the foreign exchange market, free from direct governmental interference.